Treasury Committee Urges UK Government to Strengthen Venture Capital Support and Address Industry Inequities
Parliamentary report highlights UK’s venture capital tax reliefs, emphasizes diversity improvement & regional investment for a thriving entrepreneurial landscape.
The parliamentary Treasury Committee has released its comprehensive report on Venture Capital, highlighting the positive impact of venture capital tax reliefs, including the Seed Enterprise Investment Scheme (SEIS), Enterprise Investment Scheme (EIS), and Venture Capital Trusts (VCTs) on UK small businesses. The report also addresses key areas for improvement within the venture capital sector to foster greater inclusivity, regional investment, and long-term growth.
Key Takeaways from the Report:
- Support for UK Small Businesses: Venture capital tax reliefs, such as EIS, SEIS, and VCTs, have played a vital role in providing substantial financial support to start-ups and growing businesses. The schemes have proven to be instrumental in driving innovation and fostering entrepreneurship across various sectors.
- Extending Sunset Clauses: The Treasury Committee recommends extending the sunset clauses beyond the current deadline of April 2025. Doing so would provide certainty and stability for founders and investors, enabling them to plan for the future with confidence.
- Promoting diversity: The report emphasizes that the lack of diversity within the venture capital market is unacceptable. The industry continues to be dominated by white men, hindering opportunities for underrepresented groups. The slow progress in improving diversity is a pressing concern that must be addressed.
- Mandatory Transparency on Diversity: The report urges for greater transparency and reporting on diversity statistics within venture capital firms. Mandatory reporting on diversity should be a requirement for EIS, SEIS, and VCT eligibility, fostering a more inclusive and representative sector.
- Balancing Regional Investment: The concentration of venture capital investment in London has limited opportunities for high-growth businesses in other regions and nations across the UK. The report calls for measures to promote investment in businesses outside prime investment areas, thereby fostering economic growth across the nation.
- Reassessing Company Age Limits: The current 7 and 10-year company age limits for EIS and VCTs can disadvantage businesses located outside the main investment hubs. The committee suggests reevaluating these limits to ensure that promising companies across the UK have access to vital funding support.
Enjoying this article?
Subscribe to our newsletter and never miss a story. No spam, ever.
Related Articles
Why Wealthy Families Are Building Cross-Border Advisory Teams
Regulatory complexity and the largest wealth transfer in history are pushing high-net-worth families away from solo advisors and toward coordinated specialist teams.
Black Castle Capital Partners Wins Best VC and PE Business 2026
London-based Black Castle Capital Partners named Best Venture Capital and Private Equity Business of the Year 2026 by Global 100, recognised for its boutique introduction model
ECB Opens €50 Billion Euro Backstop to Every Central Bank
The European Central Bank will make its euro repo facility permanent and globally accessible from Q3 2026, transforming a pandemic-era emergency tool into standing financial infrastructure.
